Kwacha Holds Steady as Commercial Banks Align with BoZ Rates

Lusaka, December 15, 2025 The kwacha traded within a tight range against the United States dollar in Monday morning trading, with commercial banks’ exchange rates largely aligned with the prevailing interbank market conditions monitored by the Bank of Zambia.

Data from the 09:30 trading window show that interbank buying rates averaged K23.03 per dollar, while selling rates averaged K23.08, reflecting relative stability in the foreign exchange market. Retail rates, which apply to individual and corporate customers, were slightly wider, with an average buying rate of K22.98 and an average selling rate of K23.31.

Across the banking sector, interbank buying rates ranged between K22.80 and K23.11, while interbank selling rates were clustered between K22.85 and K23.16, indicating minimal dispersion and consistent pricing across institutions.

In the retail market, buying rates generally hovered just below interbank levels, reflecting transaction margins and operational costs. Several banks quoted retail buying rates around K23.10, while others remained slightly lower, below K22.90, offering more competitive entry points for customers selling foreign currency.

On the selling side, retail rates showed wider variation. Most banks priced the dollar between K23.22 and K23.30, though a few institutions quoted higher selling rates above K23.40, reflecting differing liquidity positions and customer demand at the time of pricing.

Overall, the day’s rates point to a stable kwacha, supported by balanced foreign exchange flows and continued central bank oversight. Market participants noted that the close alignment between commercial bank rates and the market average suggests orderly trading conditions, with no signs of excessive pressure on the local currency during the morning session.

The Bank of Zambia continues to monitor movements in the interbank market as part of its broader mandate to maintain currency stability and ensure efficient price discovery in the foreign exchange market.